Post: #1

Anyone tried borrowing money on 0% interest credit cards and investing it? Some lines of credits have interests-free periods of 28 months.

http://www.moneysavingexpert.com/credit-...edit-cards

A co-worker used to do this but not on low-yielding US savings accounts or bonds but on the stock market, back then on the Colombian which took 1700% in 2 years and currently on the Venezuelan index which rose 600% since January, though the latter is extremely risky due to the new unstable government and inflationary pressures plus unsustainable of the bolivar's appreciation which boosts his gain even further as the US dollar is falling. He made quite a lot of money, borrowed 75k turned that into 300 through day trading.

Post: #2

This is just another form of borrowing capital. People open brokerage accounts with credit cards, student loans, business loans, and even car title loans but your strategy sure as hell better work. Check the details of the credit card offer because most of those offers only include 0% APR on purchases, not cash transfers.

Post: #3

Yes it's crucial that cash advances and transfers are offered at low interests otherwise it only allows shifting debts. That said a lot of stocks pay decent dividends to cover those on top of capital gains. Woah my writing is getting a little fuzzy, just too tired by speaking a foreign language all day

http://www.balancetransferexpert.co.uk/0...edit-card/

Post: #4

Better have a good exit strategy if you're going to invest it in such risky ventures. The way to get maximum credit is to apply for as many cards as you can that have this 0% offer. Multiple credit inquiries from the same company (either experian, equifax or transunion) get coded as one credit pull if done in the course of several hours on the same calendar day.

My family friend did this back in the early 2000's when there were 0% interest deals galore and 6% online savings accounts easily accessible. Guy Had nearly $1million in 20-30 different bank accounts from 0% deals earning nearly $50k of interest a year. Just paid the minimum payments for each of the cards and ultimately graduated from law school debt free.

Of course there's nothing like that now..

Post: #5

I never saw a credit card with a 0% cash advance (vs APR) for enough time to invest and earn the spread?

The best "credit card" arb I heard of was: http://www.npr.org/blogs/money/2011/07/2...ent-fliers

Post: #6

(09-04-2013 11:48 PM)Pyre Wrote:  I never saw a credit card with a 0% cash advance (vs APR) for enough time to invest and earn the spread?

The best "credit card" arb I heard of was: http://www.npr.org/blogs/money/2011/07/2...ent-fliers

Yeah NPR killed that deal good. I claimed I had a coin laundry and so I bought over $300,000 worth of $1 coins at cost using my 5% cash back Chase AARP card over a period of half a year. The cash back lasted for the introductory 6 months and $1000 worth of coins is 19 lbs roughly, so I was sweating my balls off taking the coins to the bank, depositing them and then paying off my credit card balances... But the $15k tax free i made was a decent chunk of change... Probably need to deduct $500 just for gas and chocolates to the bank tellers though.

I'm always on the lookout for these types of schemes and I'm constantly surprised to see how much I make each year off of these little schemes. Think ill start a new thread.

Post: #7

(09-04-2013 09:13 PM)PaybackTime Wrote:  He made quite a lot of money, borrowed 75k turned that into 300 through day trading.

Nice idea in theory but what if the market goes the other way? You gonna have to scramble to pay back that 75k.

High leverage = High risk

Post: #8

(09-04-2013 09:13 PM)PaybackTime Wrote:  He made quite a lot of money, borrowed 75k turned that into 300 through day trading.

Nice idea in theory but what if the market goes the other way? You gonna have to scramble to pay back that 75k.

High leverage = High risk

Post: #9

Almost all credit cards, you start building up debt immediately on cash advances(instead of waiting until the end of the month like for all other purchases).

Or are you saying you use the credit cards to purchase coins, then taking the coins to your bank as a work around?